Top News

With just a few days left for the presentation of Union Budget 2026, expectations among common citizens—especially taxpayers—are steadily rising. Finance Minister Nirmala Sitharaman will present her ninth consecutive Union Budget on February 1, a milestone in itself.

For millions of salaried individuals, middle-class families and small taxpayers, this budget is expected to focus on simplifying income tax rules rather than announcing radical structural changes.

The year 2026 holds special importance for income taxpayers because a new Income Tax Act will come into force from April 1, 2026. While the government has clarified that the new law does not fundamentally alter tax slabs or rates, its biggest objective is to make tax rules simpler, clearer and easier to understand.

Experts believe Budget 2026 will act as a bridge between the old and new tax systems, helping taxpayers transition smoothly without confusion.

One of the biggest expectations from Budget 2026 is the use of plain and simple language in tax laws. Currently, many taxpayers struggle to understand complex legal terms, leading to mistakes while filing returns.

According to tax experts, simplifying the wording of tax rules will:

• Reduce filing errors

• Lower dependency on tax consultants

• Improve voluntary compliance

For the common taxpayer, understanding tax obligations without professional help could be one of the biggest reliefs.

At present, there are more than half a dozen Income Tax Return (ITR) forms, each meant for different categories of taxpayers. This often creates confusion, resulting in incorrect form selection and filing errors.

Experts expect the government to reduce the number of ITR forms in Budget 2026. Fewer forms would make it easier for individuals to choose the right form and file returns accurately, reducing notices and disputes later.

Currently, the tax benefit on education loan interest under Section 80E is available only under the old tax regime. Tax professionals believe this benefit should also be extended to the new tax regime.

With education costs rising sharply, more middle-class families are relying on education loans. Allowing deductions in the new regime would provide much-needed relief to parents and students alike.

Air pollution in major cities like Delhi continues to be a serious concern. One of the expectations from Budget 2026 is a stronger push for electric vehicle (EV) adoption.

Experts suggest:

• Lower interest rates on loans for electric two-wheelers and cars

• Tax deductions on interest paid on EV loans

Such measures could encourage people to switch from petrol vehicles to electric alternatives, reducing pollution and fuel dependency.

Another long-standing issue for taxpayers is the presence of multiple TDS (Tax Deducted at Source) rates for different types of payments. Many taxpayers are unsure about applicable rates until deductions are made.

Budget 2026 is expected to:

• Reduce the number of TDS rates

• Simplify compliance

• Make tax deductions more predictable

This would help individuals and small businesses plan their cash flows better.

From Budget 2026, the common man is not necessarily expecting dramatic tax cuts but clarity, simplicity and ease of compliance. Measures that reduce confusion, improve understanding and lower compliance costs could have a long-lasting positive impact.

Union Budget 2026 is shaping up to be a reform-oriented budget focused on simplification rather than shock announcements. With a new Income Tax Act around the corner, the government’s priority appears to be making taxation more taxpayer-friendly and transparent.

As Finance Minister Nirmala Sitharaman prepares to take center stage on February 1, taxpayers across the country will be watching closely to see whether these expectations translate into concrete policy decisions that truly benefit the common citizen.